China Airport Industry Report, 2006-2010

Along with the rapid growth of China's economy, airport construction has achieved great development during the 10th Five-Year Plan period (2001-2005). By the end of 2005, China has had 135 civil scheduled-flight airports in 133 cities. In 2005, the total passenger throughput of China reached 284.35 million person times, increased by 17.5% over the previous year; cargo and mail throughput was 6.331 million tons with a year-on-year growth of 14.6%.

Among all civil airports in China, there are 42 airports whose annual passenger throughout exceeds 1 million person times, accounting for 94.7% of total passenger throughout; there are 7 airports whose annual passenger throughout exceeds 10 million person times, accounting for 52.1% of the total; and the passenger throughput of airports in Beijing, Shanghai and Guangzhou shares 37.3% of the total. Besides, China has 39 airports whose annual cargo and mail throughout are over 10,000 tons, accounting for 98.5% of total cargo and mail throughout. And cargo and mail throughput of airports in Beijing, Shanghai and Guangzhou accounts for 56.9% of the total.

At present, the turnover of Chinese civil aviation occupies only 0.55% of the total turnover of the whole transport system, and the passenger traffic of civil aviation accounts for only about 10% of the railway passenger traffic. However, the turnover of U.S. civil aviation occupies 9.5% of the total turnover of its comprehensive transport system. With regard to the airport density, China has 1.4 airports per 100,000 km² while Japan has 23.3 airports per 100,000 km². And even in eastern China where airports are ost concentrated, there are only 4.8 airports per 100,000 km², while Xinjiang and northwest China only have 0.6 and 0.8 airport per 100,000 km² respectively.

In recent years, the reform of Chinese airport industry has made great progress. Many positive reform measures, such as localized management on airport, encouraging foreign capitals to construct airport, opening up of air freedom rights, and the reform of investment system, etc, have brought great momentum for China airport industry.

During the 11th Five-Year Plan period, China's economy will continue to keep growing, but the growth rate will slow down to some extent. Additionally, the stable growth of both internal and international trade volume will hold the mainstream, so the demand for air cargo and mail transport will continue to rise. Now as Beijing 2008 Olympics draw near, the number of overseas tourists will witness a sharp rise during 2006-2008, which will also stimulate the great demand for international flights. Therefore, China airport industry can still see huge development potentials during the 11th Five-Year Plan period.

1. Development environment of China airport industry during 2001-20051.1 Domestic economic environment1.1.1 GDP growth trend1.1.2 Development trend of industrial production1.1.3 Status of fixed assets investment1.1.4 Development trend of domestic and foreign trade1.1.5 Residents’ income and consumption level1.2 International economic environment1.2.1 Overall development trend of world economy and trade1.2.2 Economic and trade situation of China's major trade partners1.2.3 Review of Chinese foreign trade during the 10th Five-Year plan period1.3 Policy environment1.3.1 Introducing private capital into airport industry1.3.2 Continuing to deepen the reform on airport charge system1.3.3 Localized airport management system1.3.4 Opening up of air freedom rights

5. Development Forecast of China airport industry during the 11th Five-Year Plan period5.1 Development environment5.1.1 Sustainable and stable development of national economy5.1.2 Development trend of domestic and foreign trade5.1.3 Airport programming during the 11th Five-Year Plan period5.1.4 Prospect of opening of air freedom rights5.1.5 Prospect of airport charge system reform5.2 Prospect of the transport industry during 2006-20105.2.1 Prospect of overall development capacity5.2.2 Replacement of other transport ways for air transport5.3 Prospect of market demand for civil aviation and growth of transport capacity5.3.1 Guaranteed market demand for civil aviation5.3.2 High growth rate of transport capacity5.4 Growth prospect of airport industry5.4.1 Construction goal of airport during the 11th Five-Year Plan period5.4.2 Administration level5.4.3 Business exploitation5.4.4 Freight service5.5 Forecast of major production indexes of airport industry during the 11th Five-Year Plan period5.5.1 Forecast of airport cargo and mail throughput during 2006-20105.5.2 Forecast of airport passenger throughput during 2006-20105.5.3 Forecast of aircraft movement index during 2006-2010

8. Analysis on competition and development strategy of airport industry8.1 Competition8.1.1 Location advantage determines competitive position8.1.2 Capital war caused by the entry of overseas airlines8.1.3 Surge of M & A of local airports8.2 Problems and development strategy of airport construction8.2.1 Problems8.2.2 Development strategy8.2.3 Problems in the development of Chinese civil airports8.3 Development strategy and countermeasures8.3.1 Enlightenment of US airport management mode and suggestions8.3.2 Thoughts on development strategy of western airports8.33 Improving scientific decision-making ability and enhancing airport management